It could be said that there is no need to regulate the postal industry. Unlike gas, electricity or telephones, there is no natural monopoly of the “last mile” and one can imagine that the mail is delivered by competing operators who each strive to provide an excellent service. Royal Mail, however, occupies a very strong position in the delivery market, which gives it great economies of scale and some market power. It is therefore currently necessary to control part of Royal Mail`s prices and quality of service to ensure that it does not exploit its customers. This regulation was first adopted by Postcomm in 2000, when significant commercial freedoms were granted to Royal Mail while they were held by the state. Postcomm was subsumed in Ofcom in 2011 and Royal Mail was privatised in 2013. If Royal Mail`s performance had fallen further, it might be possible to relax the regulation in a way that helps the postal industry compete with the internet, perhaps by trying to relax the requirement for universal service at European level – perhaps deliveries should only be made three days a week – but that would be politically difficult to sell and would require the agreement of other Member States. All affected postal operators are required to protect the integrity of the mail by taking all reasonable steps to minimize the exposure of relevant mailings to the risk of loss, theft, damage and/or interference, as well as to take all reasonable steps to resolve problems without delay. Everywhere, he is under pressure because the staff is sick and isolating. We will open our eyes to good employers at the end of all the employers and the poor. The post office is an important service and should continue, and if people are to be suspended for a few days, we need to put people first. Postcomm estimated that loss-making deliveries cost Royal Mail no more than $80 million a year – a tiny price if they supplied about 80 million items a day. And that didn`t take into account the benefits royal Mail has had of being the only universal service provider, both in terms of brand loyalty and failure.
Postcomm was subsumed to Ofcom in 2011 and price controls were almost completely removed in early 2012, with the only coverage being an inflation-related ceiling for the price the public would pay for second-class mail (2-4 days of delivery). It remained to be seen whether Royal Mail would use its new freedom to escape its death spiral, but the warning signs did not look good. In its decision paper, Ofcom noted that “the experience of 2006 is that price control has not been effective in ensuring that Royal Mail improves efficiency – Royal Mail has not met its own efficiency improvement targets and the objectives adopted by Postcomm in defining control.” Postcomm`s 2002 decision document, which announces the gradual introduction of competition, first for commercial mail, can be found here. Royal Mail and its postal competitors continued to face fierce competition from email and other communications and transactions on the web, partly offset by increased parcel deliveries on behalf of Amazon, etc. Royal Mail`s parcels business responded well to the occasion, including the introduction of Sunday deliveries and other innovations designed to make life easier for the recipients of the package.